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Income Taxes | 12 Months Ended
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Dec. 31, 2025
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes A portion of the Company's income is subject to U.S. federal, state, local and foreign income taxes and is taxed at the prevailing corporate tax rates. Taxes Payable as of December 31, 2025 and 2024 were $15,942 and $4,781, respectively. In October 2021, members of the Organization for Economic Co-operation and Development ("OECD") agreed on a two-pillar tax framework to realign international taxation with economic activities, including a coordinated set of rules designed to ensure large multinational enterprises pay a minimum 15% tax rate across all jurisdictions, known as Pillar Two. The U.S. has not yet adopted these rules, but several countries have enacted Pillar Two with an effective date beginning January 1, 2024. The impact of Pillar Two on the Company's effective tax rate during the year was not material and it is not expected to materially impact the Company's effective tax rate in the future. Additionally, the Company is subject to the income tax effects associated with the global intangible low-taxed income ("GILTI") provisions in the period incurred. For the years ended December 31, 2025, 2024 and 2023, no additional income tax expense associated with the GILTI provisions has been recognized. On July 4, 2025, the United States enacted House Resolution 1 of the 119th Congress ("the Act"). The Act makes permanent key elements of the Tax Cuts and Jobs Act, including 100% bonus depreciation, domestic research cost expensing, and beginning after December 31, 2025, updates for Net CFC Tested Income (formerly GILTI), which is not expected to materially impact the Company’s effective tax rate for the year. The following table presents the U.S. and non-U.S. components of Income before income tax expense:
| For the Years Ended December 31,
| 2025 |  | 2024 |  | 2023
U.S. | $ | 575,183 |  |  | $ | 431,248 |  |  | $ | 288,414 |
Non-U.S. | 169,846 |  |  | 62,439 |  |  | 47,632 |
Income before Income Tax Expense(1) | $ | 745,029 |  |  | $ | 493,687 |  |  | $ | 336,046 |
(1)Net of Noncontrolling Interest. The components of the provision for income taxes reflected on the Consolidated Statements of Operations for the years ended December 31, 2025, 2024 and 2023 consist of:
| For the Years Ended December 31,
| 2025 |  | 2024 |  | 2023
Current: |  |  |  |  |
Federal | $ | 46,201 |  |  | $ | 58,118 |  |  | $ | 48,940 |
Foreign | 54,108 |  |  | 25,577 |  |  | 20,426 |
State and Local | 37,712 |  |  | 23,639 |  |  | 14,095 |
Total Current | 138,021 |  |  | 107,334 |  |  | 83,461 |
Deferred: |  |  |  |  |
Federal | 16,165 |  |  | 18,212 |  |  | 4,400 |
Foreign | (3,156) |  |  | (14,498) |  |  | (6,580) |
State and Local | 2,077 |  |  | 4,360 |  |  | (714) |
Total Deferred | 15,086 |  |  | 8,074 |  |  | (2,894) |
Total | $ | 153,107 |  |  | $ | 115,408 |  |  | $ | 80,567 |
A reconciliation of the domestic and foreign components between the Company's federal statutory income tax rate and effective income tax rate for the year ended December 31, 2025 is as follows:
| Amount |  | Percent |  |  |  |  |  |  |  |
U.S. Federal Statutory Income Tax Rate | $ | 166,701 |  |  | 21.0 | % |  |  |  |  |  |  |  |
Domestic State and Local Income Taxes, Net of Federal Benefit(1) | 30,088 |  |  | 3.8 | % |  |  |  |  |  |  |  |
Foreign Tax Effects: |  |  |  |  |  |  |  |  |  |  |
United Kingdom |  |  |  |  |  |  |  |  |  |  |
Statutory rate difference between United Kingdom and U.S. | 6,966 |  |  | 0.9 | % |  |  |  |  |  |  |  |
Excess tax benefits on share-based awards | (9,515) |  |  | (1.2) | % |  |  |  |  |  |  |  |
Other | 2,415 |  |  | 0.3 | % |  |  |  |  |  |  |  |
France |  |  |  |  |  |  |  |  |  |  |
Statutory rate difference between France and U.S. | (313) |  |  | — | % |  |  |  |  |  |  |  |
Gain on sale of business | 15,906 |  |  | 2.0 | % |  |  |  |  |  |  |  |
Other | (100) |  |  | — | % |  |  |  |  |  |  |  |
Other foreign jurisdictions | 857 |  |  | 0.1 | % |  |  |  |  |  |  |  |
Effect of Cross-Border Tax Laws: |  |  |  |  |  |  |  |  |  |  |
France |  |  |  |  |  |  |  |  |  |  |
Foreign tax credits | (14,735) |  |  | (1.9) | % |  |  |  |  |  |  |  |
Other foreign jurisdictions |  |  |  |  |  |  |  |  |  |  |
Foreign tax credits | 1,449 |  |  | 0.2 | % |  |  |  |  |  |  |  |
Tax Credits: |  |  |  |  |  |  |  |  |  |  |
Research and development tax credits | (1,328) |  |  | (0.2) | % |  |  |  |  |  |  |  |
Non-Taxable or Non-Deductible Items: |  |  |  |  |  |  |  |  |  |  |
Non-deductible senior executive compensation | 23,818 |  |  | 3.0 | % |  |  |  |  |  |  |  |
Excess tax benefits on share-based awards | (61,399) |  |  | (7.7) | % |  |  |  |  |  |  |  |
Rate benefit as a flow through | (10,802) |  |  | (1.4) | % |  |  |  |  |  |  |  |
Other | 3,099 |  |  | 0.4 | % |  |  |  |  |  |  |  |
Effective Income Tax Rate | $ | 153,107 |  |  | 19.3 | % |  |  |  |  |  |  |  |
(1)State and local income taxes in New York City, New York State and California comprise the majority of the state and local income taxes, net of federal benefit, as of December 31, 2025. A reconciliation between the federal statutory income tax rate and the Company's effective income tax rate for the years ended December 31, 2024 and 2023 is as follows:
|  |  | For the Years Ended December 31,
|  |  | 2024 |  | 2023
Reconciliation of Federal Statutory Tax Rates: |  |  |  |  |
U.S. Statutory Tax Rate |  |  | 21.0 | % |  | 21.0 | %
Increase Due to State and Local Taxes |  |  | 5.5 | % |  | 4.6 | %
Rate Benefits as a Limited Liability Company/Flow Through |  |  | (1.6) | % |  | (2.2) | %
Foreign Taxes |  |  | 2.5 | % |  | 0.5 | %
Non-Deductible Expenses(1) |  |  | 2.3 | % |  | 2.0 | %
ASU 2016-09 Benefit for Stock Compensation |  |  | (6.6) | % |  | (3.7) | %
Valuation Allowances |  |  | (2.3) | % |  | 0.3 | %
Other Adjustments |  |  | 0.8 | % |  | (0.5) | %
Effective Income Tax Rate |  |  | 21.6 | % |  | 22.0 | %
(1)Primarily related to non-deductible share-based compensation expense. The effective tax rate for the years ended December 31, 2025, 2024 and 2023 reflects the application of ASU 2016-09, "Improvements to Employee Share-Based Payment Accounting" ("ASU 2016-09"), which requires that the tax deduction associated with the appreciation or depreciation in the Company's share price upon vesting of employee share-based awards above or below the original grant price be reflected in income tax expense. The Company's Provision for Income Taxes reflects an additional tax benefit of $78,518, $35,086 and $13,699 for the years ended December 31, 2025, 2024 and 2023, respectively, related to the application of ASU 2016-09, and resulted in a reduction in the effective tax rate of 9.9, 6.6 and 3.7 percentage points for the years ended December 31, 2025, 2024 and 2023, respectively. The effective tax rate for 2025, 2024 and 2023 also reflects the effect of certain nondeductible expenses, including expenses related to Class K-P Units, as well as the noncontrolling interest associated with LP Units and other adjustments. Deferred income taxes are provided for the effects of temporary differences between the tax basis of an asset or liability and its reported amount in the Consolidated Statements of Financial Condition. These temporary differences result in taxable or deductible amounts in future years. Details of the Company's deferred tax assets and liabilities as of December 31, 2025 and 2024 were as follows:
| December 31,
| 2025 |  | 2024
Deferred Tax Assets: |  |  |
Depreciation and Amortization | $ | 9,698 |  |  | $ | 21,316 |
Compensation and Benefits | 164,811 |  |  | 149,275 |
Step up in tax basis due to the exchange of LP Units for Class A Shares(1) | 72,776 |  |  | 63,884 |
Step up in tax basis due to the exchange of LP Units for Class A Shares(2) | 44,971 |  |  | 42,503 |
Operating Lease | 137,637 |  |  | 132,504 |
Other | 28,221 |  |  | 13,354 |
Total Deferred Tax Assets | $ | 458,114 |  |  | $ | 422,836 |
Valuation Allowance | (5,279) |  |  | (5,279) |
Total Deferred Tax Assets Net of Valuation Allowance | $ | 452,835 |  |  | $ | 417,557 |
Deferred Tax Liabilities: |  |  |
Operating Lease | $ | 111,158 |  |  | $ | 106,087 |
Goodwill, Intangible Assets and Other | 48,969 |  |  | 26,962 |
Total Deferred Tax Liabilities | $ | 160,127 |  |  | $ | 133,049 |
Net Deferred Tax Assets | $ | 297,361 |  |  | $ | 284,508 |
Net Deferred Tax Liabilities | $ | 4,652 |  |  | $ | — |
(1)Step-up in the tax basis associated with the exchange of LP Units for holders which have a tax receivable agreement. (2)Step-up in the tax basis associated with the exchange of LP Units for holders which do not have a tax receivable agreement. The $12,853 increase in net deferred tax assets from December 31, 2024 to December 31, 2025 was primarily related to additions to deferred compensation expense exceeding the grant date value of prior awards which vested during the period, included in Compensation and Benefits, including the impact of the excess current year step-ups in the basis of the tangible and intangible assets of Evercore LP over amortization, as discussed below. Net deferred tax liabilities in 2025 resulted from the tax effects of the Robey Warshaw acquisition. During 2025, the LP holders exchanged 117 Class A, Class E and Class K LP Units for Class A Shares, which resulted in an increase in the tax basis of the tangible and intangible assets of Evercore LP. The exchange of certain Class E and Class A LP Units resulted in a $9,353 step-up in the tax basis of the tangible and intangible assets of Evercore LP and a corresponding increase to Additional Paid-In Capital on the Company's Consolidated Statement of Financial Condition as of December 31, 2025. Further, there was an exchange of 249 Class A LP Units that triggered an additional liability under the Tax Receivable Agreement that was entered into in 2006 between the Company and the LP Unit holders for the year ended December 31, 2025. The agreement provides for a payment to the LP Unit holders of 85% of the cash tax savings (if any), resulting from the increased tax benefits from the exchange and for the Company to retain 15% of such benefits. Accordingly, Deferred Tax Assets, Amounts Due Pursuant to Tax Receivable Agreements and Additional Paid-In Capital increased $20,966, $17,821 and $3,145, respectively, on the Company's Consolidated Statement of Financial Condition as of December 31, 2025. See Note 15 for further discussion. The Company recorded an increase in deferred tax assets of $25 associated with changes in Unrealized Gain (Loss) on Securities and Investments and a decrease of $8,291 associated with changes in Foreign Currency Translation Adjustment Gain (Loss), in Accumulated Other Comprehensive Income (Loss), for the year ended December 31, 2025. The Company recorded an increase in deferred tax assets of $20 associated with changes in Unrealized Gain (Loss) on Securities and Investments and an increase of $3,772 associated with changes in Foreign Currency Translation Adjustment Gain (Loss), in Accumulated Other Comprehensive Income (Loss), for the year ended December 31, 2024. A reconciliation of the changes in tax positions for the years ended December 31, 2025, 2024 and 2023 is as follows:
| December 31,
| 2025 |  | 2024 |  | 2023
Beginning unrecognized tax benefit | $ | 380 |  |  | $ | 359 |  |  | $ | 359 |
Additions for tax positions of prior years | 130 |  |  | 79 |  |  | — |
Reductions for tax positions of prior years | — |  |  | — |  |  | — |
Lapse of Statute of Limitations | — |  |  | — |  |  | — |
Decrease due to settlement with Taxing Authority | (384) |  |  | (58) |  |  | — |
Ending unrecognized tax benefit | $ | 126 |  |  | $ | 380 |  |  | $ | 359 |
The Company classifies interest relating to tax matters and tax penalties as a component of income tax expense in its Consolidated Statements of Operations. As of December 31, 2025, there were $126 of unrecognized tax benefits that, if recognized, $103 would affect the effective tax rate. Related to the unrecognized tax benefits, the Company accrued interest and an adjustment to penalties of $231 and ($13), respectively, during the year ended December 31, 2025. In addition, during the year ended December 31, 2025, the Company reached an audit settlement with the Tax Authorities and $384 of unrecognized tax benefits were recognized by the Company, of which $313 affected the effective tax rate. The Company also recognized a tax benefit for the accrued interest of $581 during the year ended December 31, 2025, associated with the audit settlement. As of December 31, 2024, there were $380 of unrecognized tax benefits that, if recognized, $309 would affect the effective tax rate. Related to the unrecognized tax benefits, the Company accrued interest and penalties of $73 and $4, respectively, during the year ended December 31, 2024. In addition, during the year ended December 31, 2024, the Company reached an audit settlement with the Tax Authorities and $58 of unrecognized tax benefits were recognized by the Company, of which $47 affected the effective tax rate. The Company also recognized a tax benefit for the accrued interest and penalties of $24 and $9, respectively, during the year ended December 31, 2024, associated with the audit settlement. As of December 31, 2023, there were $359 of unrecognized tax benefits that, if recognized, $292 would affect the effective tax rate. The Company is subject to taxation in the U.S. and various state, local and foreign jurisdictions. The Company and its affiliates are currently under examination by California for tax years 2021 and 2022, Illinois for tax years 2020 through 2021, New York City for tax years 2018 through 2021, New York State for tax years 2019 through 2021 and Pennsylvania for tax years 2022 through 2023. With a few exceptions, the Company is no longer subject to U.S. federal, state, local or foreign examinations by taxing authorities for years before 2020. Detail of the Company's income tax payments made during the year ended December 31, 2025 is as follows:
U.S. Federal | $ | 52,070 |  |  |  |  |
U.S. State and Local |  |  |  |  |
New York State | 9,204 |  |  |  |
New York City | 11,434 |  |  |  |
Other | 6,407 |  |  |  |
State and Local Subtotal | 27,045 |  |  |  |
Foreign |  |  |  |  |
United Kingdom | 35,894 |  |  |  |
Other | 2,303 |  |  |  |
Foreign Subtotal | 38,197 |  |  |  |
Total Income Taxes Paid | $ | 117,312 |  |  |  |  |

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